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Market Update - December

Michael Cleary

Read Time: 5 minutes

5 Things to know about Australian Property in November: 

  1. It’s summer in Oz, however, the Sydney market continued to cool. We’re seeing price drops of about 5%. For the record, the November decline has been officially recorded at -0.7% across all dwellings, we are now firmly in a buyers market

  2. Canberra was the best performing capital city, with capital growth of 0.9%

  3. Brisbane and Adelaide are Australia’s tortoise and hare with capital growth of 0.1% and 0.0% respectively, however, there are some hidden gems to be found

  4. Perth is on the road to recovery with capital gains of 0.2%, giving the capital the first rolling quarterly capital gain since late 2014

  5. Summer is a great time to buy Australian property and snap up a deal. Buyers are scarce so sellers and agents will discount prices to get the property sold.

How the data looks across all capital cities: 

Sydney: 

  • Capital Growth (all dwellings): - 0.7% ⬇︎

  • Median Dwelling Price (all dwellings): $904,041 ⬇︎

  • Gross Rental Yield, Houses: 2.9% ⬆︎

  • Gross Rental Yield, Units: 3.6% -

  • New South Wales Unemployment Rate (October): 4.6% -

  • Property Cycle, Houses: Starting to Decline

Sydney is certainly moving from a seller's market to a buyers market as property prices stabilise after a robust period of growth. For those interested in a Sydney purchase, it’s about buying smartly and finding those great opportunities. 

Melbourne: 

  • Capital Growth (all dwellings): 0.5% ⬆︎

  • Median Dwelling Price (all dwellings): $718,325 ⬆︎

  • Gross Rental Yield, Houses: 2.6% -

  • Gross Rental Yield, Units: 3.9% -

  • Victorian Unemployment Rate (October): 5.7% ⬇︎

  • Property Cycle, Houses: Approaching Peak of Market

Although Melbourne records another positive month of capital growth we have seen the rate of growth declining. The key indicators remain positive with high population growth, relative housing affordability and a strong economy. To note, in the 16/17 year regional Victoria saw economic growth of 5.8% second only to regional South Australia. 

Brisbane:

  • Capital Growth (all dwellings): 0.1% ⬆︎

  • Median Dwelling Price (all dwellings): $490,915 ⬆︎

  • Gross Rental Yield, Houses: 4.1% ⬇︎

  • Gross Rental Yield, Units: 5.2% -

  • Queensland Unemployment Rate (October): 6.0% ⬆︎

  • Property Cycle, Houses: Rising Market

Although the overall figures show slow and steady annual growth for the Brisbane detached housing market of 3.2%, they don’t represent the full picture. If you follow the key indicators of smart property investment there are regions performing well above that range. Our key economic indicators are seeing a boost in infrastructure projects, employment and migration, all positive signs! Unfortunately, the glut of off plan investor apartments is taking the shine out of this city. 

Adelaide:

  • Capital Growth (all dwellings): 0.0% -

  • Median Dwelling Price (all dwellings): $432,126 ⬆︎

  • Gross Rental Yield, Houses: 4.1% -

  • Gross Rental Yield, Units: 5.0% -

  • South Australian Unemployment Rate (October): 5.8% -

  • Property Cycle, Houses: Rising Market

Although Adelaide records another month of stagnate capital growth, detached period homes in close proximity to the CBD are performing well, suburbs like Toorak Gardens and Parkside have seen 12-month increases of 9.42% and 7.94% respectively. 

Canberra: 

  • Capital Growth (all dwellings): 0.9% ⬆︎

  • Median Dwelling Price (all dwellings): $588,788 ⬆︎

  • Gross Rental Yield, Houses: 4.1% -

  • Gross Rental Yield, Units: 5.3% -

  • Australian Capital Territory Unemployment Rate (October): 3.8% ⬇︎

  • Property Cycle, Houses: Rising Market

The ACT housing market has continued its solid performance with medium to strong growth. We are continuing to see increased market demand in Canberra’s Inner North, Inner South and Belconnen regions. Canberra’s economy grew by 4.6% in the 16/17 year, the largest GDP growth of all capital cities with the Professional Services and Health Care sectors contributing 2.7% and 0.7% respectively.

Hobart: 

  • Capital Growth (all dwellings): 0.6% ⬆︎

  • Median Dwelling Price (all dwellings): $398,093 ⬆︎

  • Gross Rental Yield, Houses: 5.0% -

  • Gross Rental Yield, Units: 5.0% ⬇︎

  • Tasmanian Unemployment Rate (September): 6.1% ⬆︎

  • Property Cycle, Houses: Rising Market

Hobart continues to perform well and again is the best performing capital city over the past three months. With one of the highest rental yields in the country, second to Darwin and record low vacancy rates it can be perceived as an investors dream. There is no denying the demand for housing in the city, that is being fuelled by interstate investors and Self Managed Super Fund purchases is at record highs, with limited stock the numbers tell the story. We're always cautious of the Hobart market with relatively low economic and population growth, an economy heavily fuelled by tourism.

Perth: 

  • Capital Growth (all dwellings): 0.2% ⬆︎

  • Median Dwelling Price (all dwellings): $463,026 ⬆︎

  • Gross Rental Yield, Houses: 3.8% -

  • Gross Rental Yield, Units: 4.3% -

  • Western Australian Unemployment Rate (October): 5.9% ⬆︎

  • Property Cycle, Houses: Bottom of Market

There are positive signs this market is on the mend, the average days to sell a house has also dropped by 9 days to 59* and the number of properties advertised for sale has dropped by 12.7%* - the supply Vs. demand ratios are starting to shift. *compared to the same period last year.

Darwin:

  • Capital Growth (all dwellings): -0.4% ⬇︎

  • Median Dwelling Price (all dwellings): $432,774 ⬇︎

  • Gross Rental Yield, Houses: 5.7% ⬇︎

  • Gross Rental Yield, Units: 5.9% ⬆︎

  • Northern Territory Unemployment Rate (October): 4.2% ⬆︎

  • Property Cycle, Houses: Bottom of Market

Another tough month for Darwin rounding out the last three months with an all dwelling decline of -2.7% and an annual decline of -5.5%. Unfortunately, none of our key indicators are pointing to a recovery anytime soon. 

Combined Capitals: 

  • Capital Growth (all dwellings): -0.1% ⬇︎

  • Median Dwelling Price (all dwellings): $655,132 ⬆︎

  • Gross Rental Yield, Houses: 3.5% -

  • Gross Rental Yield, Units: 4.1% -

  • Australian Unemployment Rate (October): 5.4% ⬇︎

Look out for our 2017 wrap and 2018 forecast in the coming weeks. 

When presenting states, regions, and properties we provide our clients with the most relevant and latest data so they can make an informed purchasing decision. 

Milk Chocolate was founded seven years ago by Richie Ragel and Michael Cleary, to purchase residential and commercial property in Australia on behalf of our clients, looking for a home or investment property. To see how we can help you get in touch here. 

Thanks, Michael 

Source: CoreLogic / Australian Bureau of Statistics / Herron Todd White / SGS Economics and Planning 

*Unemployment rates with the exception of the Northern Territory and Australian Capital Territory are seasonally adjusted estimates. 

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